This article analyses promotion tournaments where candidates engage in multiple tasks. We consider a promotion rule where the winner of the promotion tournament is randomly selected from the best performers at each task. The promotion tournament can achieve an efficient outcome for any...

This paper examines whether partisan politics and opportunistic government behavior generate political cycles in a small open economy, and, if so, whether such effects survive under increased economic integration. We discuss evidence drawn from Cyprus for the period 1978-2006. The empirical...

We propose an additional solution to the comovement puzzle by developing a two-sector monetary model with housing production and an input-output structure. The model generates comovement between consumption and residential investment for large range of shocks hitting the economy. Consistent with...

This paper studies the form of certain expected delay costs as a function of the arrival rate for customers who pass through a service facility that allows for reneging and retrials. We show that, under certain light traffic conditions, these costs are continuously increasing and convex...

Whether pension reforms lead to an improvement in macroeconomic performance is a controversial question. Some countries, which have implemented reforms, claim better economic performance while in others a positive result has yet to be seen. This paper explores two aspects of this issue further:...

We characterize the optimal selling mechanism in a scenario where similar goods are sold to “high end” buyers through a posted price and to “lower end” buyers through an auction. We show that the optimal mechanism involves an auction which is a standard optimal auction (Myerson (1981))...

In order to assess the relationship between internal and external innovative inputs and innovative output at firm level, a knowledge production function is estimated for a representative sample of Italian manufacturing firms over the period 1998-2003. To account for endogeneity of R&D effort in...

We study alternative mechanisms facing adverse selection and moral hazard, as well as the problems of collusion and free-riding, which are often ignored in the literature. We derive the optimal monitoring mechanism and show that it solves free riding and collusion problems. However, with...

I analyze the incentive for costly information collection in a multi-unit commonvalue uniform-price auction in which bidders submit demand functions. I show that so long as there are some bidders who have a very high cost of information collection, even if there are a large number of other...

We propose a model for stock price dynamics that explicitly incorporates random waiting times between trades, also known as duration, and show how option prices can be calculated using this model. We use ultra-high-frequency data for blue-chip companies to motivate a particular choice of...